BREAKING: JPMorgan Gets CBN Approval-in-Principle for Merchant Bank

The Central Bank of Nigeria (CBN) has granted JPMorgan Approval-in-Principle (AIP) to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.

The approval is the first stage of the licensing process and does not amount to a final banking licence. The proposed bank can begin operations only after it meets all regulatory conditions and the CBN issues a final licence.

CBN’s Director of Corporate Communications and Investor Relations, Michael Akuka, said the decision reflected the apex bank’s efforts to strengthen financial stability, improve market confidence and deepen Nigeria’s links with global capital markets.

He explained that the approval followed the completion of the banking sector recapitalisation exercise, which he said had strengthened the resilience and capacity of Nigerian banks.

Akuka said JPMorgan Merchant Bank Nigeria Limited would still be required to incorporate with the Corporate Affairs Commission and complete the necessary operational and regulatory arrangements before receiving authorisation to commence business.

CBN Governor Olayemi Cardoso said the central bank’s objective was to build a financial system that was stable, competitive and internationally connected.

“Our objective is to build a financial system that is stable, competitive and internationally connected, one that commands confidence and can effectively support investment and economic growth,” he said.

“We are encouraged by the growing interest of international financial institutions in Nigeria. Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive,” Cardoso added.

The development is expected to boost competition in Nigeria’s corporate banking, investment banking and capital markets segments. It also signals renewed international interest in the country’s financial sector following ongoing reforms under the Cardoso-led CBN.

The CBN approved the nomination of Adedapo Adedayo Olagunju as Managing Director of the proposed bank.

It also approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as Non-Executive Directors, while Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as Independent Non-Executive Directors.

The central bank reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system that supports sustainable growth and expands Nigeria’s participation in global financial markets.

Recall that JPMorgan Chase & Co. had deposited N50 billion, equivalent to about $38 million, with the Central Bank of Nigeria as part of its bid to secure a merchant banking licence. The deposit was reported to be a key capital requirement for a nationally licensed merchant bank under the CBN’s recapitalisation framework, and was described as one of the final regulatory steps in the application process.

The payment was seen as a signal of JPMorgan’s readiness to establish a licensed merchant-banking operation in Nigeria, although it did not guarantee regulatory approval. Reports said the bank expected to obtain the licence by the end of 2026 or early 2027, subject to the CBN completing its assessment and issuing final authorisation.